Amgen Inc (AMGN)
Operating profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 7,897,000 | 8,856,000 | 9,495,000 | 8,987,000 | 9,566,000 | 9,640,000 | 9,358,000 | 8,010,000 | 7,639,000 | 7,343,000 | 7,418,000 | 8,913,000 | 9,139,000 | 9,179,000 | 9,202,000 | 9,557,000 | 9,674,000 | 10,008,000 | 9,855,000 | 10,009,000 |
| Revenue (ttm) | US$ in thousands | 25,976,000 | 18,426,000 | 18,462,000 | 18,381,000 | 18,649,000 | 51,099,000 | 51,147,000 | 51,407,000 | 51,365,000 | 25,471,000 | 25,484,000 | 25,164,000 | 25,424,000 | 24,987,000 | 24,301,000 | 23,966,000 | 23,362,000 | 23,395,000 | 23,562,000 | 23,750,000 |
| Operating profit margin | 30.40% | 48.06% | 51.43% | 48.89% | 51.29% | 18.87% | 18.30% | 15.58% | 14.87% | 28.83% | 29.11% | 35.42% | 35.95% | 36.74% | 37.87% | 39.88% | 41.41% | 42.78% | 41.83% | 42.14% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $7,897,000K ÷ $25,976,000K
= 30.40%
Based on the operating profit margin data provided for AMGEN Inc. from Q1 2022 to Q4 2023, we observe a gradual decline in the company's profitability. The operating profit margin decreased from 36.12% in Q1 2022 to 28.01% in Q4 2023. This decline indicates that AMGEN Inc.'s ability to generate profits from its core operations has weakened over the period under review.
It is essential to investigate the reasons behind this decline in operating profit margin. Factors such as changes in revenue, cost structure, operating efficiency, pricing strategies, and industry dynamics could have influenced this trend. A lower operating profit margin may suggest inefficiencies in cost management, pricing pressures, or declining revenues relative to operating expenses.
Analyzing the trend in operating profit margin can provide valuable insights into the company's financial performance and help stakeholders assess its profitability and operational effectiveness. Further analysis and comparison with industry peers or benchmark data may provide a more comprehensive understanding of AMGEN Inc.'s financial health and competitive positioning.
Peer comparison
Dec 31, 2023